Atal Pension Yojana: How much to pay for a monthly pension of Rs 5,000 – Check APY chart

The maximum monthly pension is capped at Rs 5,000 and only those who are between 18 and 40 years of age can contribute to APY.

The need for a regular and fixed income after retirement is something most individuals look forward to. In order to meet that, one invests in different investments such as mutual funds, stocks, bonds etc to create wealth for retirement. In addition, there are pension plans in which one can keep contributing until retirement and then start receiving a regular income. Atal Pension Yojana (APY), a guaranteed pension scheme of Government of India and administered by The Pension Fund Regulatory and Development Authority (PFRDA) is one such pension plan.

APY comes with guaranteed monthly pension and thus can provide some basic financial security to the individuals. As the maximum monthly pension is capped at Rs 5000, both spouses can contribute and set a monthly pension of Rs 10,000 for them. One needs to keep contributing ( only from a savings account) regularly till age 60 and, thereafter, a fixed amount of monthly pension will begin.

But, there are two major constraints in APY:

1. The maximum monthly pension is capped at Rs 5,000
2. Only those who are between 18 and 40 years of age

How much to pay

First, set your pension amount. Now, based on your age, look at the chart and see how much contribution you need to make monthly, quarterly or half-yearly. In APY, there is a minimum guaranteed pension of Rs.1000 per month or Rs. 2000 per month or Rs. 3000 per month or Rs. 4000 per month or Rs. 5000 per month.

APY Calculator

As per the APY calculator, for a minimum guaranteed pension of Rs. 1000 per month, the monthly contribution will be range between Rs 42 and Rs 264 for entry age of 18 to 39. The return of corpus to the nominees will be Rs 1.7 lakh, irrespective of the entry age.

Similarly, the APY calculator shows that for a minimum guaranteed pension of Rs. 2000 per month, the monthly contribution will be range between Rs 84 and Rs 528 for entry age of 18 to 39. The return of corpus to the nominees will be Rs 3.4 lakh, irrespective of the entry age.

For a minimum guaranteed pension of Rs. 3000 per month, the monthly contribution will be range between Rs 126 and Rs 792 for entry age of 18 to 39. The return of corpus to the nominees will be Rs 5.1 lakh, irrespective of the entry age.

For a minimum guaranteed pension of Rs. 4000 per month, the monthly contribution will be range between Rs 168 and Rs 1054 for entry age of 18 to 39. The return of corpus to the nominees will be Rs 6.8 lakh, irrespective of the entry age.

For a minimum guaranteed pension of Rs. 5000 per month, the monthly contribution will be range between Rs 210 and Rs 1318 for entry age of 18 to 39. The return of corpus to the nominees will be Rs 8.5 lakh, irrespective of the entry age.